My husband and I jointly own a second home, half of which was inherited by him in 2005, the remainder in 2008. It became a joint asset in 2010, since which date it has been rented. We now wish to sell it and need advice with regard to CGT. We have a valuation for his half in 2005 but not for 2008. Unfortunately, this information is no longer available either from the solicitor, HMRC or the probate office. We do have a land registry house valuation for 2010, when the house became a joint asset. Whilst we appreciate that there are certain rules regarding CGT, we would like advice regarding the best way to minimise our tax bill.
Arthur Weller replies:
A few years ago, in a capital gains tax (CGT) publication, HMRC stated that a simple straight-line time apportionment would be acceptable in valuing a property for CGT purposes. Let's say the house was worth £200,000 in 2005 and worth £250,000 in 2010. It would be reasonable to say that it was worth £230,000 in 2008